'Perfect' Private School Falls on Hard Times

Most schools would have to sell a mountain of brownies before raking
in the cash generated by a recent Phoenix Academy fund-raiser, where
people bid on imported oriental rugs, a set of silver candlesticks, and
two crystal chandeliers.

But the $62,000 raised at the event was barely enough to keep the
brand-new private school in Nashville, Tenn., from financial straits.
Now the parents of students at the school for gifted children, which
opened this fall, are hocking a $700,000 house that belonged to the
former headmistress.

In an unplanned and unwelcome twist on the idea of parent
involvement in schools, Phoenix Academy parents have been working
feverishly to keep the 188-student school afloat since mid-September,
when accusations arose of misuse of school funds by the
headmistress.

The parents took control of the school as a partial settlement in a
suit they had filed against former Headmistress Barbara Bachman, who
allegedly used school money to buy and furnish her $700,000 home. The
accord also gave the parents the house and its contents.

"We're kind of at a make-or-break situation right now," parent Edgar
Rothschild, a bankruptcy lawyer, said last week.

The parents have had a trial-by-fire course in school management.
Volunteers work the school's phones, supervise the lunchroom, and run
the library. To avoid bankruptcy, they've cut the budget to the bone,
eliminating many of the programs that drew them to the school in the
first place.

Only last week did the school's new five-member board feel it was on
somewhat firm financial ground. Once it sells Ms. Bachman's home, the
board believes it will have enough to stay open through the end of the
year, said parent Kathryn King-Metters, now the school's president.

The board recently began searching for a new headmaster or
headmistress.

'It Was Perfect'

What has become a crisis began as a dream come true for the Phoenix
Academy parents, who felt that the Nashville area's public schools were
not challenging their high-performing children.

Ms. Bachman, a former teacher at another Nashville private school,
promised an attractive concept: A K-8 school that seeks students with
IQs of 120 or higher, entices a talented faculty, and offers a
challenging curriculum including advanced courses in mathematics,
science, and computers.

The new non-profit school found a home in Nashville's First
Christian Church, from which Phoenix rents its space.The school's
annual tuition is about $6,000.

"It had everything that's written in the books for what's needed for
gifted children," said parent Terri Dozier. "It was perfect."

But after the school opened in August, parents began to suspect the
Phoenix promise was an illusion. A group of teachers and two parents
filed a lawsuit against Ms. Bachman in mid-September right after school
staff members saw their first paychecks bounce.

According to parent John Taylor, a probe by parents and staff into
the school's finances showed that Ms. Bachman had used about $300,000
in school funds to buy the house and paid for scores of expensive
items, such as jewelry, with Phoenix Academy checks.

Ms. Bachman has since told local newspapers that she bought the home
for the school, and that she wanted Phoenix to be the pilot for a chain
of new schools.

The District Attorney General's office in Davidson County, Tenn.,
confirmed last week that it was investigating Ms. Bachman. Officials
said they would not file any resulting criminal charges before the
civil suit is completed. Mr. Rothschild said the plaintiff's may seek
further damages.

Ms. Bachman could not be reached for comment, and a lawyer
representing her did not return phone calls.

Pledges From Parents

After reaching the partial settlement, the parents realized the
extent of the financial disarray. In addition to the paychecks, checks
to other creditors, including the Internal Revenue Service, bounced,
Mr. Taylor said.

The parents, most of whom had already paid their children's tuition,
pledged another $100,000. They hope to keep the 19 full- and part-time
teachers, some of whom have accepted a pay cut.

"The one good thing [Ms. Bachman] did was to hire good teachers,"
Mr. Taylor said.

Among the parents are ample lawyers, business managers, and other
professionals who have lent their expertise to keeping the school
running. Few, however, have school experience, and they're seeking
advice from experts as they design a program almost from the ground
up.

"I do crisis management, and this was a classic crisis-management
situation," said Ms. King-Metters, who assumed many of the daily
responsibilities.

Many of the Phoenix Academy parents acknowledge that they considered
throwing in the towel when the allegations first arose. But Ms.
King-Metters said they still believe in the school's concept.

The parents of about 150 of Phoenix's 188 initial students have
chosen to stay.

"I truly believe that as a country we're doing a lot to help the
kids at the tail end of the bell curve, and we don't offer adequate
schooling for the students who are exceptional," Ms. King-Metters
said.

In public school, Ms. Dozier's 8-year-old son was ridiculed as the
smart kid. "They don't label him here like they do at public school,"
she said. "He'd come home and say, 'They don't call me when I raise my
hand.'"

Vol. 16, Issue 11

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